CHAPTER - McGraw-Hill Educationbooks.mcgraw-hill.com/downloads/products/0072132302/0072132302_… · ORACLE Series / Oracle E ... iPayment, iStore and ... Export payment or billing

CHAPTER16

New Applicationsin Release 11i

ORACLE Series / Oracle E-Business Suite Financials Handbook / James, Russell, Seibert / 3230-2 / Chapter 16Blind Folio 16:477

P:\010Comp\Oracle8\230-2\ch16.vpThursday, November 01, 2001 7:43:55 AM

Color profile: Generic CMYK printer profileComposite Default screen

478 Oracle E-Business Suite Financials Handbook


Much of the excitement surrounding Release 11i concentrated on CRM(Customer Relationship Management) and the Internet products(iProcurement, iPayment, iStore and iMarketing). The financialapplications have not stood still as CRM evolved. Two newapplications, Oracle Property Manager and Oracle Treasury, have

been introduced. Additionally, to further improve the integration and usefulness of datain the E-Business Suite, Oracle introduced the Business Intelligence System (BIS).

Property Management is of interest to any organization that wants to maximizeits return on real property. Companies that own or lease real estate can allocate thecost of ownership to the employees or cost centers that use the space. Companiesthat lease their property portfolios to tenants can—with minimal administrationburden—record their leases, schedule payments for rent and service charges, andrecover rent owed. Oracle Treasury takes care of managing cash; by allowingcompanies to evaluate and manage risk it enables the execution of long-termfinancial strategy.

The Business Intelligence System makes use of data from all of the E-BusinessSuite applications to provide performance measurements, operating alerts, andmanagement reports. BIS provides key analysis across all functional areas: Finance,Manufacturing, Purchasing, Human Resource, Sales, Service, Call Center, andMarketing; delivered through a personalized home page accessed with a standardWeb browser.

Oracle Property ManagerAll companies need physical space to operate—offices for employees, factories forworkers, distribution warehouses to hold stock, retail outlets. Some own what theyneed, rarely move, and do not expand their operations. These companies are stillresponsible for the property maintenance and facilities management. Yet mostorganizations have a continually shifting property portfolio. Surplus space is subleton commercial terms. Property can be sold and leased back to release the capitalfor business expansion. Leased property gives you the flexibility to lease more orless in the future, or move operations to a more favorable location.

An Overview of Property ManagementWhether owned outright or leased, the defining characteristic is that the property islanded property. The property will have land associated with it even if there is nobuilding on the land. Car parks or agricultural land are legitimate business properties.The laborious job of recording all your properties and their subdivisions intobuildings, floors, and offices can be simplified if your data is already encoded ina database. Companies with a significant number of properties under managementshould make use of a Computer Aided Design (CAD) or Computer-assisted facilities



Chapter 16: New Applications in Release 11i 479


management (CAFM) applications to hold engineering drawings of their buildings.These systems will know the floor space of each unit. The salient information fromthese drawings can be extracted and uploaded directly to Oracle Property Manager.Modified data can be exported from Oracle to update the CAD/CAFM databases.

Managing the useful space in the property portfolio is a matter of allocating costs tobusiness units and departments based on their utilization, or leasing vacant space toexternal tenants. By doing so you will have the following at any point in time:

■ A measure of how much vacant space is costing you

■ Metrics to determine whether ownership is more or less cost effectivethan leasing

■ Cash flows per property

Managed efficiently, your property portfolio can operate at a profit. Departmentalmanagers might grumble at being charged market rent for their space usage but bydoing so the property department can run a genuine P&L (profit and loss) account.It takes a P&L analysis to indicate whether in-house property management is costeffective or should be outsourced to companies that have specialized in propertyand facilities management.

Locations, Buildings, Floors, and OfficesProperty data is built into a hierarchy. You set up buildings; each building in turncan be subdivided into floors, and the floors into offices. Each building, floor, andoffice is a location—it is assigned a location code. The distinction is important;locations are parcels of land, and buildings that are bought or leased. They appearon purchase agreements or leases. Buildings and their subdivisions are simply aconvenience for allocating charges for space usage internally. Although the locationis presented in the format of a key flexfield, it is in fact something richer, with moredata stored at each level. There are predefined data fields at each level of thehierarchy: region, building, floor and office.

Property Manager uses location codes to identify specific locations and associatethem with leases. When you set up buildings, floors, and offices you assign each analias. The building alias becomes the first element of a location code. If you set upfloors and offices, their aliases will become the second and third elements of thelocation code.

TIPUse consistently a separator character such as anunderscore (_), a point (.), or an oblique (/) to separatethe floor and office elements in the location code.



Figures 16-1, 16-2, and 16-3 show the appearance of the screens used to set upBuildings, Floors, and Offices. Note how the location code (2600TS/6/CONF) inFigure 16-3 has been constructed as an amalgamation of office, floor, and room aliases.



Description Building, Floor, or Office Alias Location Code

Building at 2600Tenth Street,Berkeley, CA

Building 2600TS 2600TS

Third floor Floor /3 2600TS/3

Sixth floor Floor /6 2600TS/6

Conferenceroom on thesixth floor

Office /CONF 2600TS/6/CONF

TABLE 16-1. Derivation of the Location Code from the Aliases

FIGURE 16-1. The Set Up Buildings screen





FIGURE 16-2. The Set Up Floor screen

FIGURE 16-3. The Set Up Office screen



The total overall floor space of the building is recorded at building level. At officelevel the floor space is measured for

■ Rentable space The rentable floor area (which would relate to rentcalculations based on $ per square foot)

■ Usable space The usable floor space

■ Common space The space taken up by corridors, toilets, or other space

Locations can be designated as part of an Office Park or a Region. You canset up office parks and regions to be independent of each other Navigation path:Locations | Define Regions and Office Parks), or you can set up office parks to belocated within a region. After you have set up the office parks and regions, you usethe Locations windows to associate specific locations with specific office parksand regions.

Landlords, Tenants, and LeasesYour company might be landlord or tenant, or quite possibly both. Leases determinethe contract of occupancy. When you are the tenant the lease is termed a MasterLease. When you act as landlord and sublet the property to a tenant the lease issimply termed a Lease. A Lease can relate to several locations. The process of extractingfrom the lease the relevant details that need to be recorded within Oracle PropertyManager is called abstraction.

You also might need to examine related documents such as conveyancedocuments, insurance policies, and service provider contracts. The lease relatesto one or several locations, and is between two parties: us, and either an externallandlord or an external tenant. The Enter Lease screen is shown in Figure 16-4. Bysetting the lease class you determine whether Payments or Billings are expectedunder the lease as shown in Table 16-2.



Lease Type Our Role Payments Billing

Direct Tenant Enabled

Third Party Landlord Enabled

Sublease Landlord on thesublease

Enabled

TABLE 16-2. Lease Types



Lease agreements are administered using the Enter Lease screen, which is shownin Figure 16-4 (Menu path: Leases and Documents | Enter Leases and Documents.Choose the New button to create a new lease). Critical information for the lease,such as rights and obligations under the contract, are recorded here too. Obligationswould clarify who was responsible for repair and maintenance.

Lease Payment and BillingPaying landlords or billing tenants is a four-step process:

1. Enter the terms of the transaction in the Payments or Billings region of theLeases window.

2. Create a payment or billing schedule, made up of individual schedule events.

3. Authorize schedule events in the Authorize Payments or AuthorizeBillings window.

4. Export payment or billing items to Oracle Payables or Oracle Receivables.



FIGURE 16-4. The Enter Lease screen



The terms of the transaction describe the amounts, start and end dates, frequency,and the GL accounts that will be affected. For payments you specify a payment termtype, which controls how the payments are treated by Oracle Property Manager.The various choices are set out in Table 16-3.

Base Rent is used extensively throughout Oracle Property Manager. The RXI-Rent Roll and Lease Expiration Report determine the total lease liability by summingall payments of type BASE. The NATURAL BREAKPOINT for VARIABLE RENT for aparticular period is calculated by totaling the BASE for that period and dividing bythe BREAK RATE. INDEX RENT is also calculated from BASE. BASIS AMOUNT isthe addition of all BASE payment types defined in the lease for the period in question.This amount is then multiplied with the percent increase in Consumer Price Index(CPI) for that period and divided by the frequency to get the INDEX RENT to be charged.

The current integration between Oracle Property Manager, and Oracle Payablesand Oracle Receivables does not give the user control over the due dates. OracleProperty Manager creates transactions with schedule dates taken from the date onwhich the transfer was performed. The application is being enhanced to reflect thenormal practice of calculating a due date from the invoice date.

Cash Flow by PropertyYou can keep track of expenses and revenue for each of your properties by setting upthe property as a general ledger subaccount in Oracle Cash Management. This gives



Payment Terms Type Explanation

ABATE Abated or free rent. Abatement means that the amountentered must be a negative amount.

BASE Base rent.

PRE Prepayment. The frequency of the prepayment is “onetime only:” the start and end dates of the prepaymentare the same.

PASS Pass-through.

DIR Direct.

ESC Escalation.

RET Retro adjustment.

SEC Security deposit.

TABLE 16-3. Explanation of the Various Lease Payment Term Types





you access to important financial information about your property such as cash flow,income, and profitability. In addition to calculating current financial data, Oracle CashManagement’s powerful forecasting tools also enable you to project future cash flows.

Space ManagementOracle Property Manager allows you to allocate space to employees or cost centers, sothat they get charged for their proportionate uses of the property costs. You can specifyoccupancy at any level within the property hierarchy; namely Regions and office parks,Buildings, Floors, or Offices. You can track space usage at any level by employee, costcenter, or both. For example, you can use this information to charge cost centers forthe square footage they use, ensuring an economical use of available space.

Integration with Other ApplicationsOracle Property Manager is integrated with Oracle General Ledger, Oracle Payables,Oracle Receivables, and Oracle Human Resources. This integration enables you touse your Property Manager records as the source of payments and billings, and useHuman Resources records as a source for employee information.

Lease terms span multiple lease payment or billing periods. The lease paymentschedules are generated by a concurrent process when a lease is finalized or thelease dates are altered by a lease amendment. The program to create rent schedulesis called PNCPMTSC. The program to modify rent schedules is PNMPMTSC. Theschedules are created based on the frequency of a payment term in the lease. Forexample, if the term is for a year and the frequency is monthly, twelve schedulesare created, one representing each month.

Oracle Property Management uses the PNEXPAP concurrent program to sendrent payable to Oracle Payables. Rents receivable are transferred from Oracle PropertyManagement to the Oracle Receivables open interface using the PNEXPAR concurrentprogram. These and the other concurrent programs used in Oracle Property Managerare shown in Table 16-4.

Oracle Property Manager calculates (using FASB-13 compliant logic) normalizedrent, accrued liabilities, and assets. Account distributions are transferred using theOpen Interface to the General Ledger, where they are uploaded as journals.

Property Manager Data ModelThe logical data model is shown in Figure 16-5. Property is assigned through theProperty Space Assignment to People. This assignment drives the allocation ofoverhead property costs to internal cost centers, in proportion to the space that the staffoccupies. The leases held with external landlords and tenants are recorded in PropertyLease. Property Lease Terms determine the rent receivable from tenants (customers inOracle Receivables) and rent payable to landlords (suppliers in Oracle Payables).





Module Description

PNCPMTSC Create Rent Schedules

PNEXPAP Export Payment Items to AP for invoice creation

PNEXPAR Export Billing items to AR for invoice creation

PNEXPCAD Export Locations and Space Allocations Data to OpenInterface Tables

PNIMPCAD Import Locations and Space Allocations Data from OpenInterface Tables

PNMPMTSC Modify Rent Schedules

PNVPURGE Purge Open Interface Tables

TABLE 16-4. Concurrent Programs Used by Property Manager

FIGURE 16-5. Property Manager Logical Data Model





The logical data model has been implemented with physical tables, as shown inTable 16-5.

Entity Physical Table Name Explanation

Property PN_PROPERTIES_ALL Categorize building andland. Properties have one ormore locations.

Property PN_LOCATIONS_ALL Locations are designatedspace within a property. Thespace can be a building, afloor, or an office. The flooris linked to the building, andthe office is linked to thefloor, by means ofparent_location_id.

Property Lease PN_LEASES_ALL Stores lease information suchas the name, number, class,and status of the lease. Afterthe lease is finalized, dataelements are protectedagainst updates.

Property Lease PN_PAYMENT_SCHEDULES_ALL

Stores rent schedules forboth landlord and tenant.

Property Lease PN_LEASE_DETAILS_ALL Holds lease dates andaccounting information.

Property LeaseAssignment

PN_TENANCIES_ALL Connects leases with theproperty locations that arecovered by the lease.

Property SpaceAssignment

PN_SPACE_ALLOCATIONS_ALL

Stores space assignmentinformation for employees.

TABLE 16-5. Property Manager Tables and Their Uses



Oracle TreasuryTreasury departments have two core functions: corporate finance, which is theprocess of raising long-term finance for a company’s expansion or acquisitionprogram and short-term funding, which is the art of understanding the companies’cash flow; and managing surpluses and shortfalls, making use of capital markets toborrow or invest money.

The objective of corporate treasury operations is to optimize financial performance.Passive intervention works on the premise that financial markets cannot be predictedand seeks to neutralize the company’s financial exposure; exchange rate exposure iscovered by foreign exchange deals designed to eliminate risk. Active managementassumes that we can predict market movement; for example, a tire manufacturerpredicts rubber prices will rise in six months. Today’s favorable price can be lockedin by buying commodity futures.

In-house banking can save money. By borrowing from subsidiaries with surplusesand lending to those who need cash, in-house banking minimizes your overallborrowing requirements and thereby your interest charges. In-house currency swapscan be organized between subsidiaries as and when their currency positions arecomplementary. You save on currency conversion fees. To recognize the opportunityyou need a centralized, up-to-date, accurate picture of all positions, spot and forward.Oracle Treasury provides in-house banking features to coordinate liquidity, financing,and intercompany transactions. It allows cash pooling across bank accounts and letsyou set interest rates for subsidiaries’ transactions to accurately reflect the fair costof funding.

An Overview of Treasury OperationsTreasury has to be part of an integrated software suite because cash forecastingdepends on inflows and outflows generated elsewhere in the ERP: Payroll, AccountsReceivable, and Accounts Payable. Treasury needs to be a separate subledger.Although the deals cast in Oracle Treasury are ultimately accounted for in GeneralLedger, the GL alone is not sufficient. Deals are opened, have a life, and are closed.One accounting journal reflects the deal value of the opening positions and severaladditional journals can be generated to reflect interest payments or to revalue thedeal throughout its life; a closing position is posted as a journal once the deal isclosed. The deal is a single transaction (albeit financially complex), which will giverise to minimum two accounting journals and maybe more if revaluations areinvolved. Intercompany funding deals will generate journals in both companies’accounts, even though they are entered only once into Oracle Treasury. The treasurymanager’s prime concern is portfolio optimization; not accounting. He or she wantsto be able to see the entire portfolio in one place and track its value over time.





Portfolios and PositionsA deal is a trade; it is a contractual agreement between two parties to exchange anunderlying asset at an agreed point of time. A portfolio is a collection of deals. Aposition is the total commitment in a particular market, the number of contractsbought less those sold. Oracle Treasury associates each deal—and therefore portfoliosand positions—with a company, or legal entity that enters into the trade. The companyprofile associates your deals with a set of books (the set of books within which thelegal entity is accounted for) and to the related bank accounts and the contact stafffor deals and settlement. Navigate to the Setup | Parties | Company Profiles windowto set up companies.

Counter parties are the organizations with which you enter into deals. Brokeragesand banks are external counter parties, whereas subsidiaries of your own organizationare internal. The counter party may be one with which you enter into foreign exchangeor money market deals; they might be a client and you the brokerage (you enter intodeals on their behalf); they might be a legal or accounting advisor of yours; or theymight be an asset valuer. Navigate to the Setup | Parties | Counterparty Profileswindow to set up counter parties.

Different Types of DealsOnce you have set up your company and its counter parties, you are ready toenter deals. The exchange deals Oracle Treasury supports rediscussed in thefollowing sections.

FOREX Spot and Forward Deals A foreign exchange (abbreviated FOREX)deal is an agreement to exchange certain amounts of currency at a specified exchangerate. Spot deals are for immediate delivery. Forward deals are for delivery at a fixeddate in the future. A foreign exchange deal can also be a swap, a transaction whereyou and the counter party lend to each other on different terms: either differentcurrencies or at different exchange rates.

Rate Rollovers A rollover is a loan that is periodically repriced at a fixed spreadabove an industry standard rate such as LIBOR.

Money Market Deals The money market is a term for borrowing or lendingmoney for three years or less. Issued initially to raise money for the issuer, thesecurities are bought and sold at exchanges until they mature, when the personholding the security gets the principal amount of the loan repaid. Securities aregovernment bonds, treasury bills, or commercial paper issued by banks or othercompanies. Although called securities, the lending is unsecured and backed only bythe reputation of the lender. Solid and reliable issuers such as the U.S. government







pay lower interest than commercial companies, which must pay higher interest ratesto attract lenders. Money market deals fall into one of the following situations:

■ Short-term money Money borrowed for short periods, one year or less.

■ Intercompany funding The transfer of money from one company to another.

■ Wholesale term money Borrowing in large amounts from banks andinstitutions. These deals are rarely exchanged or traded.

■ Retail term money Mortgages, sinking funds, or hire purchase.

■ Negotiable instruments An unconditional promise to pay some amountof money. Negotiable instruments are easily transferred from one party toanother by delivery.

■ Derivatives Options and futures are derivatives. They are financialsecurities that derive their value from the price of an underlying financialasset (a stock, bond, or commodity) or in some cases a market index.

The terms, conditions, and features of each of these deals are radically differentand each has its own dedicated window in Oracle Treasury to capture the dealparameters. Figure 16-6 shows the window where foreign exchange deals are entered.The client field is not used at present but will be introduced as more features areadded to Oracle Treasury to enable Brokerages to track deals against the clientswho made them.

Using Treasury for Cash ForecastingERP transactions are either visible in the General Ledger, such as payables andreceivables or not yet visible, such as open purchase orders and sales orders.Both are imported into Treasury as Indicative Exposures. To get cash flows fromthe rest of the ERP, you first must define the cash forecast template. Once youdefine this template, you can run the Cash Forecasting concurrent programXTRFCAST (XTR_CASH_FCST.Forecast). This program compiles data from Payables,Receivables, Purchasing, Order Entry, Payroll, and user-defined external sources.Any previous data retrieved through this process will be dropped and replacedwith the current information. Make sure you have run the cash forecast for thecorrect date range and company.

Integration with Other ApplicationsTreasury generates journals that are posted to General Ledger. Both Treasuryand General Ledger have interest rate tables. Treasury has its own rates table,





XTR_ MARKET_PRICES, which is maintained separately from the GL rates table,GL_ DAILY_RATES. Treasury uses the rates from its own rates table for revaluationsand tolerance level checks. Treasury uses the GL rates table when transferringjournal entries to GL because treasury requires both interest and foreign exchangerates, and often requires these to be updated on a more frequent basis than GL.Due to the restriction that a company can be assigned only one legal entity, thismodule impact the functional architecture.

Are Treasury Banks and Account PayableBanks Stored in Separate Tables?Treasury bank information is stored in a Treasury table (XTR_BANK_ACCOUNTS)and reconciled in Treasury using a separate reconciliation process. All parties andbanks used by Treasury need to be recorded in Treasury. The access to this data islimited to treasury users because large amounts of funds are affected. Treasurypayments are more critical than AP payments. They must be paid when due orserious penalties could result.

FIGURE 16-6. The Foreign Exchange window



Cash Forecasting in Treasury and Cash ManagementTreasury in 11i is based on the Cash Management 11.0 reconciliation engine; thetwo applications will merge in release 12. For Treasury 11i, Treasury receives itsexposure information from Payables, Receivables, Purchasing, Order Entry, Payroll,and external sources Treasury summarizes the exposure information it receives,which is then used to calculate Treasury’s various cash positions. In a future release,the Treasury Reconciliation methodology will be included in the Cash Managementprogram and cash forecasting will be taken out of Treasury.

Market Data FeedMarket Data Feed is a new feature in Oracle Treasury Release 11.5.4 that allowsyou to automatically import critical market data such as foreign exchange rates,interest rates, bond prices, and option volatilities. Because many treasury operationsrequire frequent updates to this market data, this automated method nicely complementsthe existing ability of manual entry. If you are able to receive an electronic flat fileof market data from your bank, broker, or third party rate feed provider, you nowcan import the information into Oracle Treasury. You can either format the electronicflat file to conform with the sample SQL*Loader control file that Oracle Treasuryprovides or create your own control file to import the data that is stored in anotherformat. In the end, you will create a Concurrent Request Set that you schedule toautomatically import your market data for your Current or Historic Rates. A newopen interface table, xtr_market_data_interface, has been added to control theimport of market data.

Business Intelligence SystemThe Business Intelligence System (BIS) is a suite of reports spanning Financials,Projects, Operations, Process Manufacturing, Human Resources, and CustomerRelationship Management applications. The style of reporting differs from standardapplication reporting in three ways:

■ Data can be drawn from disparate parts of the operational system.

■ Data is structured around reporting dimensions and is pre-summarized.

■ Data held in Flexfields can be retrieved and reported.

BIS is delivered using a packaged data warehouse, with prebuilt routines to extractrelevant data from the operational transaction tables. The data store structures in BISare optimized for multidimensional query access. You can also pull data fromsources other than Oracle E-Business Suite: other operational systems, other datawarehouses, and even SAP or PeopleSoft databases.







Oracle’s BIS is delivered in eight separate perspectives, accessed through thePersonal Homepage:

■ Call Center

■ Customer

■ Financials

■ Marketing

■ Operations

■ Purchasing

■ Process Manufacturing

Each perspective provides intelligence reports, performance measures, alertnotifications, and access to roughly two-dozen analysis workbooks. These areprebuilt Oracle Discover templates.

ArchitectureBIS uses data modeling principles, set out by Kimball,1 which have become the

de facto standard in data warehouse development. Data is split into measures anddimensions. Measures are the quantities upon which you want to report such asdollar costs, head count, and number of sales. Dimensions are the categories thatcharacterize and qualify the data. Common dimensions are time (such as this quarter,last quarter, financial year to date), Organization (department, cost center), geography(Asia region, Europe and Africa, North California, and so forth). Most reports are apresentation of a measure by a dimension; for example, Last Quarter’s Sales byRegion; Today’s Headcount by Department.

Data and Software ArchitectureDimensions tend to be static or slowly evolving. The data representing measures iscontinually being augmented. This is only to be expected. An organization onlyrarely creates new departments; however, new sales figures are coming in everyday. The star data model reflects this disparity. The measures are volatile and changeon a daily basis. The goal of a data warehouse is to be sufficiently up to date to provideaccurate reporting. However, the frequency that the business intelligence repositoryneeds to be refreshed is driven ultimately by the frequency that reports are generated.Daily updates might be appropriate in some circumstances but not others.

1 The Data Warehouse Toolkit, by Ralph Kimball, 1996, John Wiley & Sons.





ETL (Extract Transform Load) Each perspective has its own ETL program,which summarizes the ERP transactional data and refreshes the BIS data stores withthe latest up-to-date position. These concurrent programs must be run before anyBIS reports are produced and scheduled to rerun on a frequent basis thereafter. Theyare listed in Table 16-6.

Intelligence Reports Business Intelligence is delivered either in preconfiguredreports or with Discoverer Workbooks. The reports are Web deployed and writtenin Reports 3.1. Both mechanisms are accessed through Oracle’s Self-Service WebApplications. Users can customize their own personal homepage.

Performance Measures Performance Measures are built using Oracle WebReports. Oracle Web Reports allows you to view your data at a high level by usinga standard browser. In addition you can drill from your top-level reports to detailedinformation.

Perspective Program Name

Call Center BIXSUMPB

BIXSERSB

BIX Interaction SummaryLoadBIX Server Summary Load

Financials GLOSUM Financial Item DataCollection

Marketing CSTBISLD BIS Margin Analysis Load

Operations MRPPBIS Populate Forecast Analysis

Process Manufacturing PMI_ONHAND_SALES_SUMMARYPMI_PROD_SUMMARY

PMI Onhand SalesSummaryPMI Production Summary

Purchasing POAFTXPO Populate ProcurementFact Tables

Projects PAXACMPT

PABISUMS

PRC: Update ProjectSummary AmountsPRC: Refresh BISSummary Amounts

TABLE 16-6. BIS Extract Transform and Load Programs



Workbooks Workbooks uses Oracle Discover technology to enable you tocreate ad-hoc queries and reports. Discoverer uses the End User Layer (EUL) as abasis for building Discoverer workbooks, which allows you to drill to detail levelinformation and pivot your financial data using the prebuilt Financial Intelligenceworkbooks. To access the workbooks you need Discoverer 3i. You can also use theexisting EUL as a basis for creating new reporting business areas and new workbooks.

Finance Intelligence ContentContent is delivered in BIS as reports, performance measures, or Analysis Workbooks.Table 16-7 lists the content available within the Financials perspective.



Management Area Intelligence Reports Performance Measures Analysis WorkbooksRevenue Growth Revenues Revenue GL Analysis

Sales Revenue Sales Revenue Growth % Product RevenueAnalysis

Customer Satisfaction Return by Value Customer SatisfactionAnalysis

On-time Shipment byLineOn-time Shipment byValueActual-to-schedule

Product Quality Scrap % Product Quality AnalysisProduction Yield

Resource Utilization Resource Utilization Resource UtilizationAnalysis

Manpower TrendsSummary ManpowerAnalysisManpower Gains

Manpower Losses Manpower Separation

Separation Trends byLeaving ReasonSeparation Trend byService BandSeparation byCompetence

Profitability Profit Margin GL AnalysisContribution Margin GL AnalysisEarnings Per ShareCurrent Ratio GL AnalysisAnalysts Summary

TABLE 16-7. BIS Content for Financials





Management Area Intelligence Reports Performance Measures Analysis WorkbooksExpenses Expenses

Invoices and PaymentsCash ForecastsExpense ReportsNonconformance byOrganization

QualityNonconformanceAnalysis

Nonconformance byDefect Code

Quality Global ResultsAnalysis

Nonconformanceby ItemNonconformance by LotNonconformanceby PlanNonconformance byPlan Type

Assets Utilization Asset ResponsibilityAsset AgingAsset Aging by CategoryAsset Cost DistributionResource Utilization Resource Utilization Resource Utilization

AnalysisRisks Forecast Accuracy MRP Forecast Error %

MRP Forecast Error %by Demand Class

Collection Indicators AR TurnoverDays Sales OutstandingWeighted AverageBalanceWeighted AverageDays Late

Trading Partner Activity Receipt AnalysisBilling Analysis

Cash Cash Forecasts Cash Flow AnalysisLimits UtilizationAnalysisNet Position Analysis

Projects Project Performance Project Margin AnalysisProject Revenue Analysis

Project Cost Analysis

TABLE 16-7. BIS Content for Financials (continued)



ConclusionOracle Property Manager and Oracle Treasury are genuine subledgers that pluggaps in the traditional Receivables Payables setup. These applications will be ofinterest to large corporations, which typically perform property management andtreasury functions in house; and niche players in the facilities management andfinance businesses. Real estate companies and finance brokerages no longer needto implement specialized packages and integrate into their back office accountingsystems. These functions are, with Release 11i, available in one single integrated suite.

Oracle Business Intelligence magnifies the usefulness of operational data buriedin the E-Business Suite. Prebuilt reports, with Web drill-down, and Discovererworkbooks are tuned toward performance measurement, early warning of businessissues and accurate financial analysis and forecast. Whereas all the extract andsummarization routines are prebuilt, as are standard reports and workbooks, youcan readily extend and modify Discoverer workbooks to focus on the parametersrelevant in your organization.

Relieved of the burden of designing and programming a custom data warehouse,BIS customers can concentrate their efforts where it is most fruitful: on the qualityand content of their reporting output.






